MGT 4394 Chapter 2 Questions and
Correct Answers.
The important guiding principles of an organization, that every employee should embrace -
Answer core values
An organization's purpose, why it exists, beyond making a profit - Answer mission
What the organization hopes to become, its aspirational goal for the future - Answer vision
Quantitative measures that indicate how an organization performs in comparison to historical
trends and/ or competitors - Answer organizational performance indicators
A broad goal that an organization needs to achieve to be successful in the marketplace - Answer
strategies
What happened in the late 1800's to mission statements and visions of universities that
essentially divided people within the institutions - Answer Professors focused more on
scientific prestige rather than educating the students
. If strategies and goals do not align with the firm's mission, purpose, and vision, they need to -
Answer Be dropped, modified, or the mission needs to be revised.
What effectively captures an organization's identity and provide answers to the fundamental
question "Who are we?". - Answer Well written mission statement
Goals that are specific, measurable, attainable, realistic, and time-bound - Answer SMART
The acronym SMART stands for - Answer Specific
Measurable
Attainable
Realistic
Time-bound
The principles that are important to an organization, that all employees should adopt and live
by - Answer value statements
, Why are value statements important for a firm? - Answer They demonstrate to their
employees and other stakeholders the important principles that the organization lives by
What should a firm do if a strategy conflicts with one of its values? - Answer drop or modify
that strategy to ensure the company conforms to their corporate values as they move their
organization forward
Quantitative measures that indicate how an organization performs in comparison to historical
trends and/ or competitors. - Answer Performance measures
Reference points that a firm can use to compare its performance against others. - Answer
performance benchmarks
what are the three questions to answer that are the foundation of an organization's strategic
management? - Answer What are we?
Where are we going?
How are we going to get there?
helps managers resist the temptation to fixate on financial measures and instead monitor a
diverse set of important measures. help executives gain a general understanding of their
organization's current level of achievement across a set of four important dimensions - Answer
Balanced scorecard
What are the three approaches that organizations use to perform quantitative analysis:
financial, market-based, and general. - Answer Financial analysis
Market based analysis
General analysis
What quantitative analysis uses ratio analysis and being able to make "apple to apple"
comparisons between firms or annual trends that account for variable volumes, sales, expenses,
and profits. - Answer Financial analysis
What quantitative analysis helps determine how the firm compares to its competitors in the
market. there are two measures to analyze a firm's position in the market: - Answer Market-
Based Analysis
What quantitative analysis is used to determine how much volumes are changing each year, or
extrapolate economic data to make predictions. There most likely is industry-specific data to
analyze and use as a comparison for firms. - Answer General Quantitative analysis
Correct Answers.
The important guiding principles of an organization, that every employee should embrace -
Answer core values
An organization's purpose, why it exists, beyond making a profit - Answer mission
What the organization hopes to become, its aspirational goal for the future - Answer vision
Quantitative measures that indicate how an organization performs in comparison to historical
trends and/ or competitors - Answer organizational performance indicators
A broad goal that an organization needs to achieve to be successful in the marketplace - Answer
strategies
What happened in the late 1800's to mission statements and visions of universities that
essentially divided people within the institutions - Answer Professors focused more on
scientific prestige rather than educating the students
. If strategies and goals do not align with the firm's mission, purpose, and vision, they need to -
Answer Be dropped, modified, or the mission needs to be revised.
What effectively captures an organization's identity and provide answers to the fundamental
question "Who are we?". - Answer Well written mission statement
Goals that are specific, measurable, attainable, realistic, and time-bound - Answer SMART
The acronym SMART stands for - Answer Specific
Measurable
Attainable
Realistic
Time-bound
The principles that are important to an organization, that all employees should adopt and live
by - Answer value statements
, Why are value statements important for a firm? - Answer They demonstrate to their
employees and other stakeholders the important principles that the organization lives by
What should a firm do if a strategy conflicts with one of its values? - Answer drop or modify
that strategy to ensure the company conforms to their corporate values as they move their
organization forward
Quantitative measures that indicate how an organization performs in comparison to historical
trends and/ or competitors. - Answer Performance measures
Reference points that a firm can use to compare its performance against others. - Answer
performance benchmarks
what are the three questions to answer that are the foundation of an organization's strategic
management? - Answer What are we?
Where are we going?
How are we going to get there?
helps managers resist the temptation to fixate on financial measures and instead monitor a
diverse set of important measures. help executives gain a general understanding of their
organization's current level of achievement across a set of four important dimensions - Answer
Balanced scorecard
What are the three approaches that organizations use to perform quantitative analysis:
financial, market-based, and general. - Answer Financial analysis
Market based analysis
General analysis
What quantitative analysis uses ratio analysis and being able to make "apple to apple"
comparisons between firms or annual trends that account for variable volumes, sales, expenses,
and profits. - Answer Financial analysis
What quantitative analysis helps determine how the firm compares to its competitors in the
market. there are two measures to analyze a firm's position in the market: - Answer Market-
Based Analysis
What quantitative analysis is used to determine how much volumes are changing each year, or
extrapolate economic data to make predictions. There most likely is industry-specific data to
analyze and use as a comparison for firms. - Answer General Quantitative analysis
